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A Big Development That Could Send Aurora Cannabis Inc. (TSX:ACB) Stock Soaring!

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Aurora Cannabis Inc. (TSX:ACB) has been wheeling and dealing during the past year as it looks to make a big splash in the marijuana market. The acquisitions of MedReleaf and CanniMed put the company in a great position to become a leader in that segment. However, it has made great strides since then as well.

This past week, Aurora announced that it had received approval from Health Canada to start producing soft gel capsules. And through a significant ownership in Capcium Inc., a company that manufactures soft gel products, Aurora plans to begin production immediately.

It also announced that CanniMed would be offering medical cannabis capsules that are vegan, have no taste and can provide patients with consistent effects. The company believes that this is a “game-changer” when it comes to the medical marijuana market.

In the release, Aurora CEO Terry Booth stated, “While many people continue to use dried buds for medical symptom relief, there is growing global demand for alternative drug delivery technologies. Through CanniMed and our partnership with Capcium, we are well-positioned to lead in this segment of the Cannabis market.”

Why does this matter?

Medical marijuana is a very appealing market with tremendous growth opportunities that have unfortunately still not been realized. And while much of the hype these days circles around edibles and the potential that exists in the beverage market, there’s a lot more reach for medical marijuana products.

Healthcare is big business worldwide, and by having a discreet way for patients to consume medical marijuana, it will entice more people to try it, especially those that may feel more comfortable with taking a pill. Softgels are a popular choice when it comes to medical products, and with Aurora beginning production on this, it could lead to a lot more sales growth down the road.

Many investors may scoff, saying that medical marijuana has been around for years and it has not gone anywhere, and that the real market is in recreational pot. While it’s true that medical marijuana is not new, it still faces some major hurdles from both patients and healthcare professionals.

More studies need to be done to convince doctors of the usefulness of medical marijuana, as there’s still a lot of uncertainty out there and many professionals wouldn’t outright recommend the drug, which leaves it up to the patient to request it.

Bottom line

This is a big step in a process that Aurora has had its sights on when it made some big acquisitions in the past year, and the company is laying the groundwork to become a leader in the medical marijuana market. The potential in this segment is massive and while it may not be as exciting as recreational pot sales, it can provide for more growth as it’ll be easier to enter more parts of the world where marijuana is still only permitted for medical purposes.

While Aurora Cannabis has struggled this year, positioning itself as the top medical cannabis company could be what it needs to prove it is the best pot stock to invest in.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor David Jagielski has no position in any of the stocks mentioned.

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